This game was fun and made me wonder: have I ever seen a damn flag in my life? Seems like a simple thing, then you get in there and don't know most of them.
There is definitely a clustering of design styles. British territories for example tend to have elements of the Union Jack incorporated. Germany, Luxembourg, Italy, that area tend to have more the simple 3 stripe designs.
I found myself occasionally guessing a right answer for flags in regions I knew very little about. I guess that sort of knowledge about design trends seeped in somehow.
"deck:Ultimate Geography" "card:Flag - Country"
[1] https://ankiweb.net/shared/info/2109889812But jokes aside: yes, you are quite correct. There are a surprising amount of small island nations, republics, and dependencies that many of us have never heard of.
In fact in lots of cases it's can even be quite nice since there's practically no international drama. Security through obscurity as they say.